Norwegian fund’s exit from US firm supplying bulldozers to Israel sparks Trump’s tariff threats

By Ivan Kesic

US government recently expressed strong concern over the Norwegian wealth fund’s decision to divest from the US manufacturing giant Caterpillar Inc. over ethical concerns.

US Department of State denounced Norway’s $2 trillion wealth fund, saying it was “deeply troubled” about the fund’s recent decision to divest from the American company.

“We are very troubled by the Norwegian sovereign wealth fund’s decision, which appears to be based on illegitimate claims against Caterpillar and the Israeli government,” it said on Thursday in a statement.

“We are engaging directly with the Norwegian government on this matter.”

Norway chose to divest because Caterpillar-made bulldozers have been extensively used in the Israeli regime’s wanton destruction of Palestinian homes and lives in both Gaza and the occupied West Bank.

Norges Bank Investment Management, which oversees the fund on behalf of the Norwegian people, announced it would divest its holdings in Caterpillar and five Israeli banks, citing an “unacceptable risk that the companies contribute to serious violations of the rights of individuals in situations of war.”

By defending a company whose bulldozers have become symbols of displacement and destruction, human rights campaigners said it revealed that Trump’s foreign policy is driven not by morality but by strong loyalty to Israel’s expansionist agenda, even if it means attacking a NATO ally.

Unethical alliance against accountability

Norway’s sovereign wealth fund, one of the biggest and most respected in the world, sold its $2.1 billion stake in Caterpillar recently. Its Ethics Council provided clear evidence that Caterpillar’s D9 bulldozers were used in violations of international law in Gaza and the occupied West Bank.

The council found “widespread unlawful destruction of Palestinian property” in Gaza and the occupied West Bank, which has been supported and documented extensively by human rights groups.

Norway’s divestment aimed to send a strong message: profiting from war crimes and the ongoing genocide in Gaza, which has taken over 64,500 Palestinian lives, is unacceptable.

Instead of respecting Norway’s decision, the Trump administration reacted with outrage. A US State Department spokesperson dismissed the ethical concerns as “illegitimate claims.”  

According to activists, the blind defense of Caterpillar highlights a foreign policy where Israeli goals outweigh human rights or international law, reducing US diplomacy to a support tool for Israel’s military.

The ugly face of American pressure

The Trump administration went beyond complaints and began using belligerent threats against Norway, with US officials saying they were “engaging directly” with Norway, suggesting possible retaliation.

Senator Lindsey Graham even suggested tariffs and visa bans on Norwegian government officials.

The development came around the same time as the Trump administration sanctioned Palestinian human rights groups such as Al-Haq, PCHR, and Al Mezan because of their work with the International Criminal Court (ICC) in holding the Israeli regime accountable for the war crimes in Gaza.

This behavior, activists and observers state, reveals American hypocrisy: while it speaks about a “rules-based order,” it continues to undermine justice whenever it involves the Tel Aviv regime.  

The defense of Caterpillar is consistent with Trump’s broader pro-Israel policies, which have seen it supplying lethal weaponry to the regime despite the world calling for an immediate ceasefire.

His administration, which moved the US embassy to occupied Jerusalem, recognized illegal settlements and armed Israel to the teeth, now seeks to punish those who support boycotts or divestment.

Caterpillar has released no statement, comfortable with its role in supplying killing tools for occupation and destruction, relying on the American government’s support to reap profits.

Norway’s finance minister, Jens Stoltenberg, in a statement published in the media, emphasized that the government had no direct hand in deciding which companies were included in the fund’s portfolio.

“The government is not involved in assessing individual companies,” he said. “The decision to exclude companies is an independent decision made by the Executive Board of Norges Bank, in accordance with the established framework. It is not a political decision.”

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